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Ranking Methodology

Understanding how PMF Finance calculates leaderboard rankings to help you optimize your performance.

Core Principles​

Risk-Adjusted Returns​

Rankings prioritize risk-adjusted performance over absolute returns to prevent excessive risk-taking.

Consistency Weighting​

Consistent performance over time is valued more highly than sporadic high returns.

Activity Requirements​

Minimum activity levels ensure rankings reflect active, engaged users.

Calculation Components​

Return Metrics (40% weight)​

  • Total return percentage
  • Annualized return calculation
  • Benchmark-adjusted performance

Risk Metrics (30% weight)​

  • Sharpe ratio calculation
  • Maximum drawdown analysis
  • Volatility-adjusted scoring

Consistency Metrics (20% weight)​

  • Win rate and success frequency
  • Performance stability over time
  • Drawdown recovery patterns

Activity Metrics (10% weight)​

  • Trading frequency and engagement
  • Market participation breadth
  • Platform contribution factors

Specific Calculations​

Sharpe Ratio​

Sharpe Ratio = (Portfolio Return - Risk-Free Rate) / Portfolio Standard Deviation

Maximum Drawdown​

Max Drawdown = (Peak Value - Trough Value) / Peak Value

Consistency Score​

  • Rolling performance windows
  • Coefficient of variation analysis
  • Streak and pattern recognition

Time Period Adjustments​

Daily Rankings​

  • Focus on recent performance
  • Higher weight on current activity
  • Responsive to market changes

Monthly/Quarterly Rankings​

  • Balanced historical perspective
  • Smoothed volatility effects
  • Strategic performance evaluation

All-Time Rankings​

  • Complete performance history
  • Longevity and persistence rewards
  • Legacy achievement recognition

Category-Specific Adjustments​

Trading vs Writing​

  • Different risk profiles and expectations
  • Specialized metrics for each activity type
  • Separate ranking pools and comparisons

Market Specialization​

  • Category-specific performance tracking
  • Expertise recognition in specialized areas
  • Comparative analysis within specializations

Anti-Gaming Measures​

Wash Trading Detection​

  • Pattern recognition algorithms
  • Cross-reference analysis
  • Penalty systems for violations

Risk Gaming Prevention​

  • Minimum position holding periods
  • Correlation analysis for artificial diversification
  • Leverage and concentration limits

Transparency and Updates​

Methodology Updates​

  • Regular review and improvement
  • Community feedback integration
  • Advance notice of changes

Score Explanations​

  • Detailed breakdowns available to users
  • Historical tracking and analysis
  • Performance attribution reporting

Next Steps​

  • Review your current ranking components
  • Learn about Scoring Criteria
  • Develop strategies based on methodology understanding